DA Davidson raises Amplitude stock price target to $16 on strong growth

Published 07/08/2025, 13:54
DA Davidson raises Amplitude stock price target to $16 on strong growth

Investing.com - DA Davidson has raised its price target on Amplitude Inc (NASDAQ:AMPL) to $16.00 from $15.00 while maintaining a Buy rating on the digital analytics platform provider. The new target represents potential upside from the current price of $12.22, with InvestingPro data showing the stock has already delivered an impressive 57% return over the past year.

The price target increase follows Amplitude’s second-quarter 2025 results, which marked the sixth consecutive quarter of accelerating current remaining performance obligation (cRPO) and remaining performance obligation (RPO) growth, along with sustained improvements to customer retention metrics. The company maintains a robust gross margin of 74.2% and has demonstrated steady revenue growth of 9.9% over the last twelve months. InvestingPro analysis reveals 6 additional key insights about Amplitude’s financial position and growth prospects.

DA Davidson believes Amplitude has successfully reoriented its go-to-market function toward enterprise use cases and is well positioned to upsell and cross-sell customers through value-add products and increased platform usage.

Management has raised its 2025 revenue growth outlook to 13% at the midpoint, up from its previous projection of 11% growth.

The new $16 price target represents approximately 5 times Amplitude’s expected enterprise value to sales ratio for 2026, according to DA Davidson’s analysis.

In other recent news, Amplitude Inc. reported strong financial results for the second quarter of 2025, with revenue reaching $83.3 million, exceeding analyst forecasts. The company’s earnings per share remained steady at $0.01, aligning with expectations. Needham highlighted Amplitude’s performance by raising its price target for the company from $16.00 to $18.00, maintaining a Buy rating. The firm described the second-quarter results as "exceptional," noting a 200% year-over-year increase in net new annual recurring revenue, a significant improvement from the 100% growth in the first quarter. These developments underscore Amplitude’s strategic advancements, particularly in AI technology, contributing to its robust financial performance.

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